Johnson & Johnson (NYSE:JNJ) Shares Down 1.3% - Here's Why

On Tuesday, shares of Johnson & Johnson (NYSE:JNJ) fell by 1.3%, reaching a low of $165.06 before closing at $165.52. In midday trading, around 2,324,725 shares changed hands, marking a significant 67% drop from the usual daily volume of approximately 7,053,116 shares. The stock's previous close stood at $167.70.

Wall Street Analyst Insights

Several research firms have shared their insights regarding Johnson & Johnson's stock. On March 5th, Bank of America raised its target price for the company from $159.00 to $171.00 and maintained a "neutral" rating. Conversely, Wells Fargo & Company reduced their target from $166.00 to $152.00, assigning an "equal weight" rating on January 23rd. Guggenheim reiterated a "neutral" rating on the stock recently, while StockNews.com upgraded its rating for Johnson & Johnson from a "buy" to a "strong-buy" on January 25th.

Additionally, Royal Bank of Canada reaffirmed an "outperform" rating and set a target price of $181.00 in a report released on February 19th. Currently, the stock has nine ratings for holding, eight for buying, and two for strong buy, reflecting a consensus rating of "Moderate Buy" with an average target price of $171.33, according to MarketBeat.com.

Johnson & Johnson's Stock Performance

The company maintains a debt-to-equity ratio of 0.43, a quick ratio of 0.86, and a current ratio of 1.11. The fifty-day simple moving average for the stock stands at $153.44, while the two-hundred-day moving average is at $156.28. Johnson & Johnson boasts a market capitalization of $399.33 billion with a price-to-earnings ratio of 24.94 and a P/E/G ratio of 2.56. The stock has a beta of 0.47, indicating lower volatility compared to the market.

Latest Earnings Report

Johnson & Johnson's quarterly earnings were released on January 22nd. The company reported earnings per share (EPS) of $2.04, exceeding analysts' estimates of $1.99 by $0.05. They reported a revenue of $22.52 billion, surpassing expectations of $22.44 billion. The firm achieved a return on equity of 34.24% and a net margin of 18.20%. Revenue for the quarter increased by 5.3% year-over-year, though EPS was lower compared to last year’s $2.29.

Dividend Information

The company declared a quarterly dividend of $1.24 per share, which was paid out on March 4th. Shareholders on record as of February 18th received this dividend. The ex-dividend date was also February 18th. This results in an annualized dividend of $4.96 and a dividend yield of 2.99%. The current dividend payout ratio for Johnson & Johnson is 74.59%.

Insider Transactions

Recent insider trading shows that Vice President Robert J. Decker sold 6,999 shares of stock on February 25th at an average price of $165.88, totaling approximately $1,161,000. Following this, he owns 21,001 shares valued at around $3,484,000, reflecting a 25% decrease in ownership. Additionally, Executive Vice President Timothy Schmid sold 403 shares on February 18th at an average price of $156.15, with a total value of about $62,928. After this sale, Schmid owns 15,098 shares valued at approximately $2,358,000. Currently, company insiders hold about 0.16% of Johnson & Johnson shares.

Institutional Investor Activity

A variety of institutional investors have adjusted their stakes in Johnson & Johnson recently. Knuff & Co LLC increased their position by 0.7% during the third quarter, holding 9,466 shares valued at $1.53 million after acquiring an additional 64 shares. Vertex Planning Partners LLC raised its position by 1.3%, now owning 5,211 shares valued at $844,000 with an additional 65 shares purchased. Similarly, MRP Capital Investments LLC and Syverson Strege & Co raised their stakes by 4.1% and 4.9%, respectively.

Overall, institutional investors and hedge funds own approximately 69.55% of the company's stock.

Company Overview

Johnson & Johnson is a holding company engaged in researching, developing, manufacturing, and selling healthcare products. Its operations are divided into the Innovative Medicine and MedTech segments, focusing on fields such as immunology, infectious diseases, oncology, cardiovascular health, and considerably more.

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